- SL Green’s $743M loan on 1515 Broadway has entered special servicing due to an upcoming maturity deadline in March, with the company finalizing an extension.
- The firm proposed transforming 1515 Broadway into a $4B Caesars Palace casino, in partnership with Caesars Entertainment and Jay-Z’s Roc Nation.
- Paramount leases most of the building, adding complexity to potential refinancing efforts, especially following its recent workforce reduction.
According to The Real Deal, SL Green’s (SLG) $743M loan for 1515 Broadway, where it has proposed developing a casino, recently entered special servicing.
Deal Details
The Times Square building’s loan, currently performing at below 4% interest, is up for maturity in March 2025. While refinancing could involve higher interest rates, SL Green is reportedly finalizing an extension to meet obligations.
Despite the building’s steady cash flow and full occupancy, refinancing could be complicated by Paramount’s (PARA) tenancy, which occupies nearly all of 1515 Broadway. Paramount’s recent layoffs, cutting 15% of its workforce, raise potential concerns for SL Green’s efforts to secure long-term financing on a near-single-tenant property.
Casino Bid
SL Green’s proposed $4B transformation of 1515 Broadway into a Caesars Palace casino is part of a high-stakes bid to win one of three New York state casino licenses.
The development, in collaboration with Caesars Entertainment (CZR) and Jay-Z’s Roc Nation, aims to repurpose the iconic office tower, which also houses the long-running Miskoff Theater.
New York State will announce casino license recipients by the end of 2025, making the building’s future pivotal for SL Green.
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Economic Outlook
As SL Green awaits a decision on the casino license, the special servicing and tenant concentration issues underscore the challenges facing large-scale, single-tenant office properties in New York’s evolving real estate landscape.
If approved, the casino development could enhance 1515 Broadway’s cash flow, but the current loan’s special servicing status reflects the financial pressures amid broader market uncertainty.
